Beauty really does lie in the detail. We have all gazed at the splendor a professional high-resolution image and understood, after snapping away for years on a compact camera or phone, that there is richness in more information. Higher resolution means seeing details you haven’t been able to see before.
Credit Card Scores: Delivering Greater ResolutionThis is exactly what Westpac Banking was aiming for when it looked to FICO to introduce a daily transaction score. Westpac was looking to improve its ‘financial resolution’ by assessing its customer risk and attrition every day, instead of the industry standard of every 30 days.
FICO® Transaction Scores are based on a customer’s card usage patterns and updated with every transaction authorization, yielding a more precise and current assessment of customer risk and purchase behavior that can be used to target cardholder decisions.
Credit Card Scores: Increased Revenue, Reduced Bad DebtsThe impact of this predictive analytics project for Australia’s second-biggest bank has been far-reaching. Paul Deall, senior manager of unsecured risk at Westpac, and his team have fundamentally changed the way the bank manages its 3 million credit card accounts. The FICO solution is on track to deliver $6 million per year in increased revenue and reduced bad debt expense. This significant achievement is even more remarkable in that it was implemented in 12 months and is future-proofed and scalable.
The project results have made it a worthy winner this year of the FICO Decision Management Award for Customer Growth and Retention. Winners will be featured in presentations at FICO World 2014 in San Diego, November 11-14.
Credit Card Scores: A Competitive AdvantagePaul Deall said, “Improving the speed with which we can identify and act on changes in customer behavior has given us an edge. Customer communication is also a major contributor to account retention, so improving our reaction time has helped us hold onto customers.
“In a fiercely competitive banking market such as Australia, the main financial players are fighting for share of wallet, with customer service as the principal battleground.”